Eastman Acquires Specialty Chemical Company Solutia

Eastman Chemical Co. and Solutia Inc., whose solar-related product offerings include fluids for concentrating solar power plants and encapsulants for PV modules, have entered into a definitive agreement under which Eastman will acquire Solutia.

Under the terms of the agreement, Solutia stockholders will receive $22.00 in cash and 0.12 shares of Eastman common stock for each share of Solutia common stock. Based on yesterday's closing prices, Solutia shareholders will receive cash and stock valued at $27.65 per Solutia common share, representing a premium of 42% and a total transaction value of approximately $4.7 billion, including the assumption of Solutia's debt.

According to the companies, this acquisition is a significant step in Eastman's strategy to extend its global presence in emerging markets. In particular, it should significantly accelerate Eastman's growth efforts and offer excellent growth opportunities in the Asia Pacific.

The transaction, which was approved by the boards of directors of both companies, remains subject to approval by Solutia's shareholders and receipt of required regulatory approvals, as well as other customary closing conditions. The transaction is expected to close midyear.